The price of carrots per kilogram is given in the table below for several years, as...

Transcribed Image Text:

The price of carrots per kilogram is given in the table below for several years, as is the corresponding CPI. 2003 2005 2007 2009 2011 2013 Nominal carrot price $ 2.70 3.40 3.00 2.60 2.60 3.40 CPI 111 113 116 119 121 124 a) Compute a nominal price index for carrots using 2003 as the base period. Nominal Price Year Index 2003 2005 2007 2009 2011 2013 b) Recompute the CPI using 2003 as the base year. Consumer Price Year Index 2003 2005 2007 2009 2011 2013 c) Construct a real price index for carrots. Real Price Year Index 2003 2005 2007 2009 2011 2013 The price of carrots per kilogram is given in the table below for several years, as is the corresponding CPI. 2003 2005 2007 2009 2011 2013 Nominal carrot price $ 2.70 3.40 3.00 2.60 2.60 3.40 CPI 111 113 116 119 121 124 a) Compute a nominal price index for carrots using 2003 as the base period. Nominal Price Year Index 2003 2005 2007 2009 2011 2013 b) Recompute the CPI using 2003 as the base year. Consumer Price Year Index 2003 2005 2007 2009 2011 2013 c) Construct a real price index for carrots. Real Price Year Index 2003 2005 2007 2009 2011 2013